HOUSTON, TX - Tellurian (NYSE:TELL) Inc. (NYSE American: TELL), a player in the crude petroleum and natural gas industry, has announced the upcoming completion of its merger with Woodside (OTC:WOPEY) Energy Holdings (NA) LLC. The merger is expected to finalize on or about October 8, 2024, following clearance from the Committee on Foreign Investment in the United States.
This development comes after a special meeting of Tellurian's stockholders on October 3, 2024, where several key proposals related to the merger were voted upon. The meeting, which was adjourned and reconvened on the following day, saw the approval of the Merger Agreement with Woodside Energy Holdings, as well as the non-binding, advisory approval of related executive compensation.
The adjournment proposal, which allows for additional time to solicit proxies if necessary, passed with 475,687,617 votes for, 65,387,985 against, and 21,677,345 abstentions. The Merger Agreement itself received 513,557,986 votes in favor, 45,913,891 against, and 3,531,070 abstentions. The non-binding vote on merger-related compensation for named executive officers passed with 323,889,798 votes for, 211,207,343 against, and 27,655,806 abstentions.
The successful merger is contingent upon the satisfaction of customary closing conditions. This strategic move is expected to enhance Tellurian's position in the energy sector, although the company has not provided any forward-looking statements beyond the anticipated closing date.
In other recent news, Tellurian Inc. has secured shareholder approval for its $1.2 billion acquisition by Woodside Energy Group, an Australian energy producer. The acquisition, which includes Tellurian's Driftwood LNG export project, is expected to address financial challenges faced by the company and facilitate the project's advancement. In addition, Tellurian has announced a definitive merger agreement with Woodside Energy Holdings, resulting in Tellurian becoming a wholly owned subsidiary of Woodside. The merger agreement is subject to stockholder approval and has faced legal scrutiny over the sufficiency of disclosures provided in the proxy statement.
In response, Tellurian has made additional voluntary disclosures. Furthermore, Tellurian has amended its certificate of incorporation to include details of its Series C Convertible Preferred Stock and agreed to sell its Haynesville gas-producing assets to Aethon Energy for $260 million.
InvestingPro Insights
As Tellurian Inc. (NYSE American: TELL) approaches the completion of its merger with Woodside Energy Holdings, investors should consider some key financial metrics and insights from InvestingPro.
According to InvestingPro data, Tellurian's market capitalization stands at $872.43 million, reflecting its current position in the energy sector. The company's revenue for the last twelve months as of Q2 2024 was $166.13 million, with a revenue growth rate of -9.53% over the same period. This aligns with an InvestingPro Tip indicating that analysts anticipate a sales decline in the current year.
Despite the upcoming merger, Tellurian faces some financial challenges. An InvestingPro Tip highlights that the company's short-term obligations exceed its liquid assets, which could be a concern for investors considering the company's financial stability post-merger. Additionally, Tellurian has not been profitable over the last twelve months, with analysts not anticipating profitability this year.
On a more positive note, Tellurian's stock has shown strong performance recently. InvestingPro data reveals a 41.37% price total return over the last three months and a significant 66.2% return over the past six months. This aligns with InvestingPro Tips noting the stock's strong recent returns and large price uptick.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Tellurian, providing a deeper understanding of the company's financial position and market performance as it moves towards this significant merger.
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